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              IDA News Release No.         75/51                                      July 3, 1975


                           $3 MILLION CREDIT FOR TRADITIONAL ENTERPRISES IN CAMEROON


                       Traditional small businesses in Cameroon will be assisted by a $3 mil-

              lion credit by the International Development Association (IDA), an affiliate

              of the World Bank.        It is the first project of its kind in Africa to be

              supported by the World Bank.

                       The credit will enable the Banque Camerounaise de ~veloppement (BCD)

              finance the establishment and expansion of small- and medium-scale manufacturing,

              artisan, service, transport, repair and construction firms.



•                      About 80 such enterprises will be assisted, representing total invest-

              ments of about $11 million and creating employment for about 1,000 skilled

              workers.

                       The experimental project will explore the full potential of the "informal"

              sector, in which entrepreneurs normally rely on traditional technologies and

              operate independently of institutions.               The project will expand technical

              assistance and promote a system of guarantees and incentives for small businesses.

              It will also strengthen the organization and investment capabilities of BCD.
                                                           ,
                      The Caisse Centrale de Cooperation Economique of France will loan an

             additional $3 million to BCD to help finance investment under the project; and

             UNDP will make a grant of $1.2 million for technical assistance.

                      The IDA credit is for a term of 50 years including 10 years of grace and

             is interest-free with a 3/4 of 1% service charge to meet IDA's administrative



•            expenses.


             Note:    Money figures are expressed in US dollar equivalents.

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